In essence, a shop rate is the broad average of fixed costs over recoverable hours that are inflexible. They provide no means of analysis or adjustment.

• Flat shop rates bear no relationship to what’s actually happening in a business at any one time. 

• They have a tendency to "stagnate" when times are good, and be forgotten when work is scarce.

• There can be no adjustment or feedback on a “per part”, “per customer” or “per capacity” basis.  For example; if the job is lost because the price was high, where does the cost review begin to find out why? 

Shop rates are popular because they are quick and easy to work out. The alternative which is doing it properly, can be time consuming and complicated.  

QuoteCam allows the estimator to prepare a “qualified quote” in the same time it takes to do it "incorrectly" using the old method. 

• With QuoteCam, each work center cost is determined individually. 

• Answering a few basic questions enables the overhead burden rate to be calculated. 

• When completed, the combined effect is an accurate and flexible costing model that can be fine tuned for every quote.